Budget amendment would increase NCUA borrowing

WASHINGTON (4/29/09)--An amendment that would increase the National Credit Union Administration's (NCUA) borrowing authority was retained in a budget resolution conference agreement scheduled to be voted on by the House Tuesday. The Senate is expected to vote on the agreement today.

The amendment, by Sen. Mike Crapo (R-Idaho) and Sen. Bob Corker (R-Tenn.), would increase NCUA's borrowing authority to $6 billion from $100 million, and establish an emergency borrowing authority of $18 billion. The amendment also would allow credit unions to spread out realizing the premium cost associated with NCUA's corporate credit union stabilization efforts over five years.

A deficit neutral reserve fund for the authority was included in the conference agreement, which means that the chairman of the Committee on the Budget of the Senate can revise the budget for one or more bills, joint resolutions, amendments, motions or conference reports to increase NCUA's borrowing authority as long as it does not increase the budget's deficit.

Crapo's amendment, which was approved unanimously by the Senate Banking Committee, was a "significant step" toward relief for credit unions, according to the Credit Union National Association (CUNA).

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